Tuesday

Government bonds around the world are on a tear, sending yields to multi-year lows. The US 10-year Treasury note yield just made another low for the year.

In early trade on Tuesday, the yield on the US 10-year fell below 2.2% to 2.19%, its lowest level since June 2013, while the German 10-year yield fell back below 0.9%.

The bond market in the US was closed on Monday for the Columbus Day holiday, but US stocks suffered their third straight losing session as the S&P 500 completed its worst three-day stretch since 2011.

The fall in US bonds this year has gone against the consensus forecast from most every strategist on Wall Street.

At the beginning of the year, the 10-year was yielding 3%, and Wall Street's consensus estimate for 2014 was a rise to 3.4%.

DoubleLine's Jeff Gundlach said that the 10-year would fall, not rise, during 2014, and in August told Business Insider that his expectation was for the 10-year to trade between 2.2%-2.8% during the balance of the year, with the risk being that it falls below 2.2%.

On Tuesday, that became reality.

In addition the 10-year's tumble, the yield on the US 30-Year Treasury bond also made a new low, falling below 3% for the first time since May 2013.

And the fall in US yields comes as bonds in Europe continue to see yields tumble, led by Germany, which has seen the yield 10-year bunds fall back below 0.9%.